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Insurance Non-life insurance premium up by 32% in FY 2016-17

Non-life insurance premium up by 32% in FY 2016-17

Experts attribute this growth to increasing premium collection in health insurance, motor insurance and crop insurance.
Rosevina Gonsalves Apr 11, 2017

Non-life insurance companies have kept their momentum going by recording 32% growth in premium collection in FY 2016-17. Insurance companies and advisors attribute this growth to increase in health, motor and crop insurance business.

In FY 2016-17, the non-life insurers have collected total premium of Rs. 1.27 lakh crore as against Rs. 96,376 crore in the preceding fiscal.

Among private players, ICICI Lombard General Insurance has topped the chart by registering a growth of 32% with premium collection of Rs. 10725 crore while Bajaj Allianz stood at second position with premium collection of Rs. 7633 crore resulting in 30% growth. The total premium collected by private non-life insurers stood at Rs. 53,622 crore in FY 2016-17.

PSU general insurers saw growth of 24% in its premium collection i.e. to Rs. 59,397 crore in FY 2016-17 from Rs. 47,690 in FY 2015-16. Amongst PSUs, New India Assurance collected the highest premium of Rs. 19,065 crore resulting in a 26% growth followed by United India that reported a premium income of Rs. 15,500 crore with a 27% hike.

Standalone health insurers collected close to Rs.60000 crore, recording a 41% growth over the previous fiscal. All six standalone insurers recorded a healthy double-digit growth last fiscal.

Experts attribute this growth to increase in demand of health insurance, comprehensive motor insurance and crop insurance business. Due to increased awareness about health insurance and launch of three-year motor insurance policy, many people have bought both health and motor insurance policies last fiscal, say experts.

Typically, IRDAI hikes third party premium rate of motor insurance policies every year. Hence, policyholders prefer buying long-term motor insurance cover to avoid paying higher premium for the similar cover next year.

Another segment that has witnessed growth last fiscal is crop insurance. Anirudh Singh, COO, Raheja QBE General Insurance believes, “It is evident from the fact that Agriculture Insurance Company (AIC) posted a growth of 101% in FY 2016-17. Government initiatives like Pradhan Mantri Fasal Bima Yojana has also given a boost to this segment.”

 

 

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